Photos 
is the new iPhoto 
on Mac OSX Yosemite/El Capitan and Sierra. Albums are created in a similar way to those created in iPhoto .
To create an album:
- Launch Photos on your Mac and click on the Albums tab in the top menu.
- Click on the + in the top right of the application. This will give you a drop down menu of Different Albums that you can Add.
- Select Album.
- Select a Title for this new Album. Press OK.
- Press Continue in the top right hand corner.
- Click and Drag in the photos you wish to Add to this Album.
